DCIT, New Delhi V. M/s. Lilliput Kidswear Ltd., New Delhi

ITA 6541/DEL/2013

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4051 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 31-07-2017
• Assessment Year: 2009-2010
• Appeal Filed On: 06-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: N O N E
• Keywords: Unexplained expenditure
• Section: 43B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: D , NEW DELHI BEFORE SHRI R .K. PANDA , ACCOUNTANT MEMBER AND SMT. BEENA A PILLAI, JUDICIAL MEMBER ITA NO. 5830 /DEL/201 3 A.Y. 20 0 9 - 10 LILLIPUT KIDSWEAR LTD. C/O ML PURI & CO. 407, NEW DELHI HOUSE 27, BARAKHAMBA ROAD CONNAUGHT PLACE NEW DELHI 110 001 PAN: AAECA 3021 E VS . ACIT, RANGE 4 NEW DELHI AND ITA NO. 6541 /DEL/201 3 A.Y. 20 09 - 10 D CIT, CIRCLE 4 (1) NEW DELHI VS . LILLIPUT KIDSWEAR LTD. NEW DELHI (APPELLANT) (RESPONDENT) A SSESSEE BY NON E RE VENUE BY SHRI AMIT JAIN, S R.D.R. DATE OF HEARING 0 8 .01.2018 DATE OF PRONOUNCEMENT 15.01.2018 ORDER PER BEENA A PILLAI, JUDICIAL MEMBER P RESENT C ROSS A PPEALS FILED BY ASSESSEE AS WELL AS REVENUE AGAINST ORDER DATED 23/09/13 PASSED BY LD.CIT(A) - 8, NEW DELHI FOR ASSESSMENT YEAR 2009 - 10 ON THE FOLLOWING GROUNDS OF APPEAL: ITA NO.5830/DEL/2013 LILLIPUT KIDSWEAR LTD. VS. ACIT, CIRCLE 4 ITA NO.6541/DEL/13 DCIT, CIRCLE 4(1) VS. LILLIPUT KIDSWEAR LTD. A.Y. 2009 - 10 PAGE 2 OF 4 ITA NO. 5830/DEL/2013 1. THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) VIII, NEW DELHI HAS ERRED BOTH IN LAW AND ON FACTS IN SUSTAINING AN ADDITION OF RS. 28,88,992/ - OUT OF RS. 2,63,02,056/ - REPRESENTING EXPENDITURE INCURRED ON JOB WORK BY THE APPELLANT COMPANY. 2 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS FURTHE R ERRED BOTH IN LAW AND ON FACTS IN UPHOLDING THE DISALLOWANCE OF RS.2,64,725/ - OUT OF RS. 42,48,600 / - REPRESENTING THE UNEXPLAINED EXPENDITURE INCURRED ON CREDIT CARD BY THE APPELLANT COMPANY. 3 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ALSO ERRED BOTH IN LAW AND ON FACTS IN SUSTAINING AN ADDITION OF RS.3,12,847/ - BY INVOKING SECTION 43B OF THE ACT. 4 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED BOTH IN LAW AND ON FACTS IN SUSTAINING A DISALLOWANCE OF RS.24,232/ - BEING THE SALARY PAID BY THE APPELLANT COMPANY AS LEAVE ENCASHMENT AND ALLOWABLE AS SUCH . 5 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED BOTH IN LAW AND ON FACTS IN CONFIRMING THE D ISALLOWANCE OF RS.2,19,652 / - REPRESENTING EXPENDITURE ON FOREIGN TRAVELLING OF MRS.BINDIYA NARULA WIFE OF THE DIRECTOR OF THE APPELLANT COMPANY. 6 . THAT THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED BOTH IN LAW AND ON FACTS IN SUSTAINING THE D ISALLOWANCE OF RS.15,75,635/ - AND RS. 1,70,000 / - REPRESENTING EXPENDITURE ON BUSINESS PROMOTION INCURRED BY THE APPELL ANT COMPANY. IT IS THEREFORE, PRAYED THAT, ADDITIONS/DISALLOWANCES MADE AND SUSTAINED BY THE LD.CIT(A) MAY KINDLY BE DELETED AND APPEAL OF THE APPELLANT COMPANY BE ALLOWED. ITA NO. 6541/DEL/2013 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) ERRED IN RESTRICTING THE DISALLOWANCE OF RS. 28,88,992/ - OUT OF TOTAL DISALLOWANCE MADE AT RS. 2,63,02,056/ - OUT OF JOB WORK CHARGES PAID? ITA NO.5830/DEL/2013 LILLIPUT KIDSWEAR LTD. VS. ACIT, CIRCLE 4 ITA NO.6541/DEL/13 DCIT, CIRCLE 4(1) VS. LILLIPUT KIDSWEAR LTD. A.Y. 2009 - 10 PAGE 3 OF 4 2 . WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD.CIT(A) HAS E R RED IN DELETING THE ADDITION OF RS. 82,19,569 / - BEING DISALLOWANCE OUT OF DISCOUNTS? 3 . THAT THE ORDER OF THE LD. CIT(A) IS ERRONEOUS AND IS NOT TENABLE ON FACTS AND IN LAW. 4 . THAT THE GROUND OF APPEAL ARE WITHOUT PREJUDICE TO EACH OTHER. 5 . THE APPELLANT CRAVES LEAVE TO ADD, TO ALTER OR AMEND ANY GROUND OF THE APPEAL RAISED ABOVE AT THE TIME OF THE HEARING. 2. DURING THE COURSE OF HEARING IT WA S OBSERVED THAT THE APPEAL FILED BY ASSESSEE HAS BEEN LISTED SINCE 2015 AND ASSESSEE HAS BEEN CONSISTENTLY MAKING APPLI CATIONS FOR ADJOURNMENT. FROM 20/04/17 ONW A RDS NONE HA S APPEAR ED ON BEHALF OF ASSESSEE . FURTHER ON PERUSAL OF RECORD , IT IS OBSERVED THAT ASSESSEE VIDE LETTER DATED 22/12/16 INTIMATED THIS T RIBUNAL REGARDING ORDER DATED 06/01/14 PASSED BY HON BLE DELHI HIGH COURT A P POINTING O FFICIAL L IQUIDATOR , TO TAKE CHARGE OF ALL ASSETS OF ASSESSEE COMPANY. SINCE THEN ASSESSEE HAS NOT INTIMATED REGARDING STATUS OF WINDING UP PETITION FILED BY BANKS UNDER SECTION 433 (E) OF C OMPANIES A CT, 1956. SEVERAL NOTICES HA VE BEEN SENT THEREAFTER A T THE REGISTERED ADDRES S OF ASSESSEE BUT NOBODY HAS APPEARED ON BEHALF OF ASSESSEE , N OR THERE HAS BEEN ANY APPLICATION FROM THE O FFICE OF O FFICIAL L IQUIDATOR. WE ARE THEREFORE LEFT WITH NO CHOICE BUT TO DISMISS THE APPEAL FILED BY ASSESSEE WITH LIBERTY TO RESTORE THE APPEAL ON AN APPLICATION MADE EITHER BY ASSESSEE ITSELF OR BY THE OFFICIAL LIQUIDATOR IN CHARGE OF ASSESSEE COMPANY. 3. IN T HE C ROSS A PPEAL FILED BY REVENUE , IT IS OBSERVED THAT O FFICIAL L IQUIDATOR HAS NOT BEEN BROUGHT ON RECORD EVEN AFTER INTIMATION OF ITA NO.5830/DEL/2013 LILLIPUT KIDSWEAR LTD. VS. ACIT, CIRCLE 4 ITA NO.6541/DEL/13 DCIT, CIRCLE 4(1) VS. LILLIPUT KIDSWEAR LTD. A.Y. 2009 - 10 PAGE 4 OF 4 ORDER DATED 06/01/ 2014 PASSED BY HON BLE DELHI HIGH COURT TO THE DEPARTMENT . THE REVENUE S APPEAL IS THEREFORE DISMISSED WITH THE LIBERTY TO RESTORE THE APPEAL AFTER TAKING PROPER STEPS OF BRINGING THE OFFICIAL LIQUIDATOR ON RECORD AS PER LAW. 4. IN THE RESULT APPEA LS FILED BY ASSESSEE AS WELL AS REVENUE STAND DISMISSED. ORDER P RONOUNCED IN THE OPEN COURT ON 15 TH JANUARY, 2018. SD/ - SD/ - ( R .K. PANDA ) (BEENA A PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 15 TH JANUARY, 2018 *MV COPY OF THE ORDER FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GUARD FILE BY ORDER ASST. REGISTRAR ITAT, DELHI BENCHES, NEW DELHI